Indian shares are expected to open flat to slightly lower on Wednesday amid continued foreign institutional investor selling, geopolitical uncertainties in West Asia, and Federal Reserve rate hike concerns. Benchmark indexes Sensex and Nifty ended Tuesday modestly lower, with foreign institutional investors offloading shares worth Rs 2,557 crore while domestic institutional investors net bought Rs 6,842 crore. The rupee ended at 94.66 per dollar, logging its first quarterly gain since March 2025. Renewed tensions between the US and Iran, including Iran's refusal to meet top US envoys in Qatar, have dampened hopes for a durable truce, while Lebanon's parliament speaker vowed to block a US-mediated deal with Israel. Asian markets were mixed, the yen hit a fresh 40-year low, gold was at $3,980 an ounce, and Brent crude steadied above $73 a barrel.